Raising the bar in insurance: What Kenya’s new Insurance Professionals Act Law really means

On June 17, 2025, President William Ruto signed into law the Insurance Professionals Act, 2024.

It did not make front-page headlines, but for anyone who cares about trust, ethics, and accountability in the insurance sector, it should have.

The new law marks a defining shift in how insurance is practised and regulated in Kenya, introducing much-needed clarity, consistency, and professional standards to a sector long in need of reform.

For years, the insurance space in Kenya has operated with minimal oversight.

While many professionals are highly trained and ethical, others are not. Clients often had no idea who they were dealing with or whether the advice they were receiving was sound.

The absence of a formal professional framework made it difficult to enforce accountability. This is now changing.

The Insurance Professionals Act, 2024, introduces structure and standards where there previously were none.

Anyone offering insurance advice, handling claims, underwriting policies, or engaging in any core insurance function is now required to hold a valid licence. Without one, they cannot practice.

This forms a strong baseline of credibility for a profession that deals directly with people’s financial security.

To support this, the law establishes an Examinations Board tasked with overseeing qualifying tests, while the Insurance Institute of Kenya (IIK) is responsible for training and professional development.

A clear code of conduct has also been introduced, accompanied by a Disciplinary Committee with powers to act where ethical lines are crossed.

These measures, taken together, signal a long-awaited professionalisation of the sector.

As of December 2024, the Insurance Regulatory Authority (IRA) reported that 14,560 licensed insurance agents were operating in Kenya, excluding brokers and underwriters, with a significant share of gross written premiums generated through this agent network.

By introducing licensing, a formal code of conduct, and structured accountability, the Act lays the groundwork for a more trustworthy and professional industry, one where clients feel protected, informed, and confident in their engagements.

One of the most forward-looking shifts in the new legislation is the requirement for Continuing Professional Development (CPD).

To maintain their licences, professionals must complete a set number of CPD hours annually.

This could involve attending workshops, taking relevant courses, or participating in approved industry events.

It introduces a culture of lifelong learning; an essential move in a sector that must constantly adapt to emerging risks and client needs.

Yes, it does require time and commitment. However, it plays a critical role in ensuring that professionals remain current, empowered, and well-equipped to provide informed guidance within an ever-evolving landscape.

Similar requirements already exist in international markets, making this an important step towards aligning Kenya’s insurance sector with global standards.

Let’s consider Ronald, a father from Nakuru who recently purchased a family health policy.

In the past, he had no way of knowing whether the agent he spoke to was qualified or accountable.

He simply had to trust them. Now, Ronald has the right to ask for proof of licensing. Ronald will now be able to verify that his agent has fulfilled the CPD requirements.

In the event of any issues, he may lodge a formal complaint through a regulatory channel empowered to take appropriate action.

For the first time, insurance in Kenya includes built-in protection for the client, and that is a fundamental shift.

It moves the experience of buying insurance from one of risk and hope to one of transparency and assurance.

For those managing or working within insurance companies, the law brings with it a new set of responsibilities.

Organisations must ensure that individuals involved in selling, underwriting, claims, or advisory services are fully licensed.

They will need to support CPD, whether by developing internal programmes or partnering with accredited providers.

They must also build systems that track licensing, renewals, and compliance.

Not everyone within a company needs to be licensed. Those in IT, Marketing, HR, or finance who are not directly involved in insurance operations are exempt.

But their work still plays a crucial role in supporting the infrastructure that keeps licensed professionals compliant.

The Insurance Professionals Act is more than just a legal instrument. It is a bold step toward making insurance more professional, more transparent, and more human. By investing in competence, Kenya is laying the groundwork for greater consumer protection and long-term sector growth.

Let us not view this change as a burden. Let us seize it as an opportunity to lead not just in compliance, but in trust, service, and purpose.

Author: Justine Kosgei, CEO & Principal Officer, AAR Insurance